SWIFT announced that it has entered into an agreement with Financial Fusion, a Sybase company and Global Crossing to offer a FIX hub messaging solution to the securities industry. The SWIFTNet FIX hub solution will enable broker/dealers, investment managers, exchanges and ECNs to connect to a single secure trading session with multiple counterparties. In addition, SWIFT will also support FIX point-to-point messaging via SWIFTNet.
FIX Hub service will allow FIX users to communicate on one-to-many basis. At the moment most FIX counter-parties are dealing with each other on a one-to one basis over a leased line, and SWIFT Net is just another way for them to carry on doing that. But FIX Hub will simplify the transmission of messages between multiple counter-parties, such as price requests, indications of interest, trade orders and allocations. Instead of having to link separately to, say, forty separate counter-parties, they can link once to FIX Hub and gain access to them all through a single interface.”
Under the terms of the agreement, SWIFT will partner with Financial Fusion and Global Crossing to host a FIX hub on its SWIFTNet IP-based messaging platform. Financial Fusion will provide the software that will power the FIX hub. Testing and piloting of the solution will commence in Q1 2002, with planned commercial roll-out in Q2 2002.
The benefits to firms adopting the SWIFTNet FIX hub solution include single-session management, faster connectivity to pre-established trading partners, lower networking costs and easier access to counterparties worldwide. The hub will route, monitor and manage FIX message traffic, ensuring the high degree of security and reliability required to relay live trade information.
The solution extends SWIFTNet’s single window access model, enabling SWIFT to provide the front and back offices of securities firms with standardised messaging services that cover the entire transaction lifecycle. Ultimately, these services will facilitate translation between the various versions of the FIX protocol and other standards, including ISO 15022.
“The SWIFTNet FIX solution fulfils Financial Fusion’s mission to offer the financial services industry solutions that improve STP and substantially reduce the risk and cost of doing business,” said Michon M. Schenck, president and COO, Financial Fusion. “Financial Fusion is extremely honoured to work with industry leader SWIFT to provide a service that helps financial institutions reduce the barriers to achieving STP.””With this deal we can provide a framework for moving from multiple bilateral connections to a single, standardised connection with multiple counterparties. From what, in many cases were insecure connections to completely secure connections,” said Leonard H. Schrank, CEO, SWIFT. “As a result, the industry’s automation and STP will increase.”